Banking Sector Roundup Q1fy24 BCG

Banking Sector
Roundup – Q1 FY24
AUGUST 2023
Glossary: Classification of Indian banks used in this document
PSU (12 banks) Private—New (10 banks) Private—Old (8 banks)
Copyright © 2023 by Boston Consulting Group. All rights reserved.

Small Finance (3 banks)
1
Q1FY24 results: Banking industry snapshot
Total Deposits Total Net Advances Retail Advances1 Corporate Advances

Business
₹183.5L Crore ₹139.7L Crore ₹44.4L Crore ₹48.8L Crore

14% YoY 17% YoY 20% YoY 15% YoY
Total Income Net interest income Non-Interest Income PAT

Profitability
₹4.9L Crores ₹1.9L Crore ₹65.9K Crore ₹74.0K Crore

38% YoY 27% YoY 60% YoY 69% YoY

ROA CASA Ratio Cost-Income GNPA (%)
Key Ratios
1.4% Increased by 41.02% 48.0% Reduced by 3.7% Reduced by

45 bps YoY 256 bps YoY 325 bps YoY 203 bps YoY
1. Retail loans include home loan, auto loans, personal loans, and other retail loans 2
Summary Snapshot (I/II)
• India's GDP grew at 8.0% in Q1FY24, forecasted to grow between 6 to 6.5% YoY in FY24
− Most agencies have retained their GDP forecast for FY24 compared to previous quarter
• Moderate growth was seen across most high-frequency indicators vs last year
Macro Trends • Slowdown witnessed across exports, imports & two-wheeler consumption; uptick in EV registration &
three-wheeler sales
• Banking sector reported healthy profit of Rs. 0.74 lakh crore with a YoY jump of 69% for Q1FY2024
− Absolute profits for PSU Banks doubled YoY from Rs. 0.15 lakh crore to Rs. 0.34 lakh crore
− Hence, share in overall banking sector net profit of PSU Banks increased YoY from 35% to 47%

• ROA YoY improved during the quarter from 0.9% to 1.4%
− Profitability is driven by growth in interest & fee income, treasury gains & lower provisioning
Key
• Deposit rate and repo rate differential narrowed down as banks raised rates to mobilize deposits
Performance
Indicators • Bank's capitalization remains at comfortable levels providing adequate buffer for future growth
• PSU Banks witness improvement in valuation, outperforming peers between Apr'21 and Jul'23
− However, Private Banks continues to command premium valuation
3
Summary Snapshot (II/II)
• Credit-deposit growth gap narrows as deposit grows stronger
− However, credit growth continues to outpace deposit growth at 17% and 14%, respectively
• Credit: Robust growth achieved across segment. Growth for Corporate (23%) & MSME (27%) segment of
private new banks were stronger compared to industry 15% & 18% respectively
• Deposits: CASA continued under pressure as YoY growth declined to 7% from 11%
Business − Sharp uptick in term deposits YoY growth from 9% to 19% due to deposit repricing
− CD issuances remained elevated over the year as banks continue to issue CDs as credit growth
sustains
• Strong asset quality metrics bolstered confidence in the industry

− Gross NPAs improved across banks with Industry GNPA at a decadal low of 3.7%

− Reduction in NPA levels seen across banks due to write offs & lower slippages
NPA & • Healthy coverage against NPAs across banks
Risk Mgmt. • Bounce Rates remained range bound, near term outlook sanguine
• Digital Banking continues to remain an important agenda for bank

− Banks are adapting digital banking by adding more branches and repositioning it as advisory centers
with a digital-first mindset
Digital • 43% YoY jump witnessed in digital transactions
− Share of UPI transactions volumes also improved from 41% to 46% YoY
4
Macro Indicators
Key Performance Indicators
Business: Advances & Deposits

Banking
sector NPA & Risk Management
overview Digital in Banking

Key Regulatory Measures
Individual Player Performance
5
Macro indicators
India expected to grow at 6 to 6.5% amongst the fastest in the world
FY24 GDP growth forecast2 retained by most

Trend in real GDP growth YoY (%)
agencies or revised upwards
FY22: 9.1% FY23: 7.2%1 Increase/Decrease
from last estimate
JP Morgan 5.5% 0 bps

21.6%
OECD 6.0% 10 bps
13.1% S&P 6.0% 0 bps
9.1%
8.0%

UBS 6.2% 0 bps
5.2% 6.2% 6.1%
4.0% 4.0% 4.5%
Morgan Stanley 6.2% 0 bps
World Bank 6.3% 0 bps
-6.6% Fitch 6.3% 30 bps

FY20
FY21
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24 RBI 6.5% 0 bps
1. GDP growth for FY23 based on provisional estimates; 2: Forecast as of August 10, 2023
Note: Upper-limit has been included where agencies reported forecast range. Latest forecasts considered in case of revision by agency within same month;
Source: Analyst reports, BCG analysis 6
Macro indicators
Moderate growth across most high-frequency indicators vs last year

Slowdown witnessed across exports, imports & 2 wheeler consumption; uptick in EV registrations
Latest Vs. Vs. Latest Vs. Vs.

Month Last year Last month Month Last year Last month
Jun’23 Jun’22 YoY May’23 MoM Jun’23 Jun’22 YoY May’23 MoM
Industry Auto
IIP (Index) 145.0 137.7 5% 140.0 4% PV Sales ('000 Units) 337.9 332.0 2% 341.6 -1%
Power Consumption (‘000 MUs) 4.6 4.5 4% 4.4 6% Tractor Sales ('000 Units) 106.6 107.0 0% 91.3 17%
Petroleum Consumption (MMT) 19.3 18.7 3% 20.0 -4% 2W Sales ('0000 Units) 160.4 170.4 -6% 173.2 -7%
Steel Consumption (MMT) 9.9 8.9 12% 10.3 -4% EV Registrations ('000 Units) 101.8 73.3 39% 157.2 -35%
Cement Production (MT) 36.5 30.1 19% 36.5 0%
Trade & Investment BFSI

Merchandize Exports ($ Bn) 33.0 37.9 -13% 35.0 -6% UPI Value (INR Tn) 14.8 10.1 46% 14.9 -1%

Merchandize Imports ($ Bn) 53.1 63.6 -16% 57.0 -7% NSE & BSE Txns.(INR K C r) 1417.3 1044.0 36% 1402.6 1%
Services Exports ($ Bn) 27.1 24.8 9% 25.0 8% Insurance Premium (INR K Cr) 57.3 49.0 17% 42.0 36%
Services Imports ($ Bn) 15.9 16.1 -1% 14.0 13%
Logistics Sentiment
E-way Bills (Mn) 86.0 74.5 15% 88.0 -2% Manufacturing PMI (Index) 57.8 53.9 7% 58.7 -2%
JNPT Traffic ('000 TEUs) 476.0 493.0 -3% 528.0 -10% Services PMI (Index) 58.5 59.2 -1% 61.2 -4%
Rail Freight (Mn Tons) 134.0 132.0 2% 126.0 6% Current Situation Index 89 76 17% 87 2%
Air Freight (K Tons) 270.1 271.1 0% 269.0 0% Future Expectations Index 116 113 3% 116 0%
Note: EV registrations incl. E-bus, E-car, electric 3W, electric 2W, electric 3W cargo sales, others
Source: DBIE, NPCI, IRDAI, AMFI, GIC, Life Insurance Council of India BCG analysis 7
Macro indicators
Most BFSI indicators showcased robust growth over June 2022

India is performing well on multiple economic and policy parameters, albeit some concerns around inflation persist
UPI Mutual funds AUM (INR Tn)

UPI value & volume rose 47% and 60% YoY in Jun’23 respectively Mutual funds AUM witnessed a tremendous growth of 24% YoY
5 Value (INR Tn) Volumes (INR Bn)
44.0
14.8 45
10.1
10 40
35.6
5 9.4
0 5.9 0
Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 Jun-23 Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 Jun-23

Aggregate deposits & credit (INR Tn) Insurance premium (INR '000 Cr.)
Deposits and Credit grew 14% and 17% YoY in Jun’23 respectively Life Insurance premium rose 16% YoY in Jun’23
Aggregate Deposits Aggregate Credit Life Insurance Premium Non Life Insurance Premium
191
167
49 57
150
144
100 123
Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 Jun-23
Jan-22 Mar-23 Jun-22 Sept-22 Dec-22 Mar-23 Apr-23 Jun-23
1.Mutual funds Assets Under Management (AUM) represented as recorded at end of every month shown. Mutual Funds AUM include investments from individuals (50.5%) & institutions
(49.5%); institutions include domestic and foreign institutions and banks; 2. Aggregate deposits & credit latest available for May'23 3.Non-Life Insurance includes Fire, Marine, Motor,
Engineering, Health, Cop Insurance, Credit Guarantee, Aviation, Personnel accident and Miscellaneous
Source: DBIE, NPCI, IRDAI, AMFI, GIC, Life Insurance Council of India BCG analysis 8
Macro indicators
Three-wheeler sales witnessed robust growth of 28% YoY in June 2023

Passenger vehicles and tractor sales were stagnant, drop recorded in two wheeler yoy sales in June 2023
Passenger vehicles sales (’000 units) Two-wheeler sales (’0000 units)

Passenger vehicle sales up 2% YoY 2W sales registered as decline of 6% YoY in Jun'23
400 200 170 160

332.0 338.0
350
300 100
250
200 0
Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 Jun-23 Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 June-23

Tractor sales (’000 units) Three-wheeler sales (’000 units)
Tractor sales rebound to June'22 levels post decline Uptick is due to lower base effect & positive market sentiment
150 100 78
107 107
61
100
50
50
0 0
Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 June-23 Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Apr-23 June-23
Figures represent wholesale numbers (including exports)

1.BMW, Mercedes and Volvo Auto data is not available
Source: SIAM, CMIE, TMA, Press search, BCG analysis 9
Macro Indicators

Banking

10
69% YoY jump in absolute profits fueled by higher NII & treasury gains
Confidence in Asset Quality allowed banks to scale back on provisioning
Values for
Q1FY24
INR Bn
4,254
Substantial Mark to market gains
bolstered other income growth
63%
Share of PSBs in banking sector
PSBs 58% PAT increased from ~35% to ~47%
660 2,528 YoY
36% 51%
1,869 53%
48%
Private 1% 1% 53%

-2,385 45% 1,316
53% 2% 65%
-1,212 52% 35% 0% 52% 740
40% 46%
46% -294 1%
SFBs 46% -282 46%
47% 52%
1% 1% 1% 1% 1%
Interest Interest NII Other Total income Opex PPOP Credit Cost Taxes Net profit
earned expense Income (Net)
Growth
35% 42% 27% 60% 34% 25% 43% -12% 87% 69%
YoY1
1. YoY growth Q1FY24 vs. Q1FY23
Analysis has been made based on 33 Banks: 12 PSBs, 10 Private-New, 8 Private-Old Banks and 3 Small Finance Banks 11
Source: Capitaline; Press releases; BCG analysis
Industry profitability improved during the quarter

Driven by growth in interest & fee income, treasury gains and lower provisioning
RoA Tree PSBs Private New Private Old SFBs Industry
Particulars1 UoM Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23
Net interest Margin (%) 2.9 2.6 4.4 4.0 3.5 3.2 7.7 7.9 3.5 3.1
Fee + Other Income (%) 1.0 0.6 1.6 1.4 1.2 0.8 1.8 1.5 1.2 0.9
Operating expenses (%) 1.9 1.7 2.8 2.5 2.6 2.3 5.9 5.9 2.3 2.0

Pre-Provision Profit2 (%) 2.0 1.5 3.3 2.8 2.1 1.7 3.7 3.5 2.4 1.9
Credit costs (%) 0.6 0.8 0.5 0.5 0.4 0.6 0.3 0.8 0.5 0.7
Tax (%) 0.4 0.2 0.7 0.6 0.4 0.3 0.8 0.7 0.5 0.3
Return on Assets (%) 1.0 0.5 2.0 1.7 1.3 0.8 2.5 2.1 1.4 0.9
1. All the above #s are as a % of average assets; 2. Pre-provision profit may not tally due to rounding off differences
Analysis has been made based on 33 Banks: 12 PSBs, 10 Private-New, 8 Private-Old Banks and 3 Small Finance Banks
Source: Capitaline, Press releases, BCG analysis 12
Yield: Private players better positioned to pass through rate hikes

Consequently, yields generated by Private Banks fared better than that by PSU banks
~70% of industry loans are floating rate based; of which 50% are EBLR-based, wherein rate transmission is immediate
Fixed Rate Loans 30% 25%

46%
57%
For Pvt Banks, higher

share of EBLR-based loans

73%
Floating Rate Loans 70%
50% helped in better
36% transmission of repo rate
3% 4% 1%
2% 2% 1%
Industry Industry PSU Banks Pvt Banks
MCLR EBLR Base Rate Others
Note: MCLR: Marginal Cost of funds-based Lending Rate, EBLR: External Benchmark-based Lending Rate. Data as of June 2023
Source: RBI; BCG analysis 13
TD and Repo rate differential narrowed down as banks

pass on interest rate hikes to mobilize deposits
Increase in rates
Lending and Deposit rate (%) since June 2022
9.2 9.3 9.2 160 Repo Rate

9.0
8.6 8.7
8.9 8.9 bps
8.2 8.3
7.9 Consecutive repo rate pauses
expected to stabilize TD rate hikes
Weighted Average
6.5 6.5 6.5 129 Lending Rate

6.3 6.3
5.9 5.9 5.9 bps (Industry)
5.4 5.4 6.3
6.0 6.2
5.1 5.8 5.9
5.5 5.6
4.9 5.3 5.4
5.2
Weighted Average
Jun’22 Jul’22 Aug’22 Sept’22 Oct’22 Nov’22 Dec’22 Jan’23 Feb’23 Mar’23 Jun’23 121 Term Deposit
bps Rates (Industry)
Average Lending Rates Average Deposit Rates Repo Rate
Note: WALR is Weighted Average Lending Rates on fresh loans and WATDR is Weighted Average Domestic Term Deposit Rates on outstanding
deposits; All figures at an aggregate industry level
Banks scaled back on provisioning owing to confidence in books, Opex gained

traction and elevates to a five-year high
Credit costs by bank category Opex by bank category
% %
3 3 2.8
2.5 2.4
2.3
2.1
2 2
1.5 1.9
1.8 1.8

1.7 1.7
1.3 0.9
1 0.8 1
0.7 0.6
0.9
0.5 0.5 0.5
0 0
FY21 FY22 Q1FY23 FY23 Q1FY24 FY21 FY22 Q1FY23 FY23 Q1FY24
PSBs Private
Industry ROA and ROE maintain an upward trajectory

Absolute profits for PSBs doubled in Q1FY24; Pvt Banks share in industry net profit down to 52% vs. 64% YoY
Return on Assets1 by bank category Return on Equity2 by bank category
(%)
2.5 19.8
2.5 20 18.5
2.3
2.1 16.7 16.8
2.1 2.0 16.3
2.0 16.2 14.0
15 13.2 15.8
1.6 1.6 14.1 13.7 15.7
1.7 12.4 13.1
1.5 1.4
1.5 10.5 10.5
1.2 10.9 12.4
1.1 1.3 10 9.0

7.7 8.8 10.6
0.9 0.9 1.1
1.0 1.0 7.5 7.8
0.8 0.8
0.6 0.7 5 4.6
0.5 0.6 0.5
0.5
0.3
0.0 0
PSBs Private New Private Old SFB Industry
1Return on Assets is calculated as net profit/average assets 2Return on Equity is calculated as net profit/average shareholders' fund
Source: RBI; Capitaline; Press releases; BCG analysis 16
Banks capitalization remain at comfortable levels
Capital to Risk-weighted assets ratio (%) (Jun '23)
26 27
21 20 22 21
20 19
18 18 18 17 18 17
17 17 17 16 16 17 16 16 16 17 16 16 16 17
15 14 15 14
13 Minimum
requirement
9%

Bank of India
Federal
RBL
Kotak Mah.
Bandhan
Union
IDBI
ICICI
South Ind.
Ujjivan
HDFC
PNB
SBI
DCB
Indian
BOB
IOB
J&K
Dhanlaxmi
AU
IndusInd
Axis
PSB
Equitas
Yes
UCO
Bank of Maha
CSB
Central Bank
Karnataka
IDFC First
Canara
Karur Vysya
Credit
Growth 17 20 8 16 18 7 22 22 26 21 26 15 14 27 13 11 20 18 14 16 15 23 31 16 19 14 5 17 21 15 34 34 29
(%)
Private New banks PSU banks Private Old banks SFB
Source: Capitaline, Investor presentation, BCG Analysis 17

PSU Banks outperformed peers and overall market since Apr'21
Index (weighted by market cap.) for PSBs, Pvt Banks and NBFCs
PSU Index Pvt Banks Index
200
149.3
150
110.8
100

50
Apr’21 Jun’21 Sept’21 Dec’21 Mar’22 Jun’22 Sept’22 Dec’22 Mar’23 May’23 Jul’23
Change in Market Cap (%)

PSU Banks Private Banks Sensex
Apr'21 to Jul'23 49.3% 10.8% 32.9%
Note: PSBs index includes 12 PSBs; Private Bank index includes 10 Private-New and 9 Private-Old Banks. Index weighted as per market capitalization of banks
Index period from April 1st, 2021 to July 31th , 2023
Source: Capital IQ 18
Private Banks continues to command premium valuation vs. PSBs

Select Banks
Price to book ratio (As on 30th June 2023)
PSU Banks Private New Banks Private Old Banks
IOB 2.1 46 CSB Bank 1.6 5

Kotak Mah. Bank 4.4 367
SBI 1.7 511 Federal Bank 1.2 27

HDFC Bank 3.4 952
P&SB 1.5 22 DCB Bank 0.9 4

ICICI Bank 3.3 654
UCO Bank 1.4 33 South Ind.Bank 0.6 4

Axis Bank 2.4 304
BoM 1.4 19
Small Finance Banks

IndusInd Bank 2.0 107
BoB 1.0 98
AU 4.6 50
IDBI Bank 1.6 59
Central Bank 1.0 25
Yes Bank 1.2 47 Equitas 1.9 10

Indian Bank 0.9 36
Canara Bank 0.8 55 RBL 0.8 11 Ujjivan 1.9 7
Market Cap (INR in '000 crores) (as on 30th June 2023)
Source: Capitaline; BCG analysis 19

PSU Banks valuations soared over June 2022
Price/Book for PSU Banks

2.1 Jun 22 Jun 23
1.7
1.6
1.5 1.5
1.4 1.4
1.0 1.0
0.9 0.9 0.8
0.7 0.7
0.6 0.6 0.6 0.6 0.6 0.6
0.5
0.4 0.4 0.4

UCO
Indian
Central
BoI
IOB
BoB
Canara
SBI
BoM
PNB
P&SB
Union
Market Cap1
46 511 22 19 33 98 25 36 55 49 57 30
(Rs'000 Cr)
Return since
49% 23% 126% 86% 150% 96% 72% 96% 67% 111% 78% 66%
Jun'22 (%)2
Note: 1.Market Cap as on Jun 30, 2023, 2.Return refer to YoY change in Market Cap
Source: Capitaline, BCG Analysis 20
Mixed performance in valuation for Pvt. Banks, however, they continue to

command premium valuation vs PSU Banks
Price/Book for Private Banks
4.6 Jun 22 Jun 23
4.4
3.4 3.3
3.1
2.9
2.4 2.4
2.1 2.0 2.0
1.7 1.6 1.6 1.5
1.3 1.3 1.3 1.2 1.2 1.2
0.9 0.9 1.0 0.9 0.9 0.8 0.8 0.7
0.6 0.6
0.5 0.4 0.4 0.5

0.3 0.3 0.3
Axis
Yes
Karnataka
IndusInd
DCB
CSB
CUB
Kotak
HDFC
Bandhan
Dhanlaxmi
Federal
SIB
KVB
IDFC
J&K
IDBI
RBL
ICICI
Market Cap1
367 952 654 304 53 39 107 5 59 9 27 47 10 4 11 6 6 4 0.4
(Rs'000 Cr)
Return since
11% 27% 33% 56% 169% -8% 73% 47% 80% -4% 41% 47% 179% 65% 118% 192% 139% 154% 48%
Jun'22 (%)2
SFB & select Private old banks valuations remained high over June 2022
Price/Book for Private-Old and Small Finance Banks

5.0 Jun 22 Jun 23
4.6
1.9 1.9
1.6 1.5
1.3 1.3 1.2
1.2 1.0 1.0 1.2 1.2
0.9 0.8
0.6 0.6 0.7 0.6
0.5 0.4 0.5

0.3 0.3 0.3
Karnataka
Suryoday
DCB
Equitas
Ujjivan
CSB
CUB
Federal
SIB
Dhanlaxmi
KVB
J&K
AU SFB
Market Cap1
50 10 7 5 9 27 2 10 4 6 6 4 0.4
(Rs'000 Cr)
Return since
35% 103% 185% 47% -4% 41% 122% 179% 65% 192% 139% 154% 48%
Jun'22 (%)2
Merger of HDFC Bank Ltd. & HDFC Ltd. executed on July 1, 2023
Proforma merged HDFC Bank's financials (30 June) Post-merger key updates
Loan Book1 (E) Total Deposits (E)

(Rs. billion) (Rs. billion)
20,651 • Market share: Post merger estimated credit

23,204 share ~15% & deposits share ~11%
2% 7% from
5% 5%
27% from HDFC Ltd.
22% HDFC Ltd. • Loan Book: Mortgage mix of ~35% post merger
vs. 11% pre merger
17%

93% • Impact on NIM: Merged entity will have to
28%
meet additional ~Rs. 1,200 billion CRR & SLR
requirements (for HDFC Ltd.) which will
28%
impact NIM in near term
HDFC’s non-individual loans

• Impact of expanded balance sheet: Additional
HDFC’s individual loans
HDFC’s non-retail deposits
loans to priority sector, leading to challenge
HDFC’s retail deposits
HDFC Bank’s wholesale loans
HDFC Bank’s deposit
to raise more deposit in near term
HDFC Bank’s retail loans
HDFC Bank’s commercial/rural banking loans
1. Proforma merged loans are before adjustments for IBPC / BRDS

Source: HDFC Bank press release, Analyst Reports 23
Key moves from HDFC | Implications for industry
Driving greater cross-sell from group Aggressive growth plans to deepen presence
Presence in cities Presence in villages

(in lakhs)
HDFC Ltd. customers which 6,000 2.25
~70% don’t have HDFC as primary 4,080 1.65
bank
HL penetration in retail
2% FY 23 FY 24E
customers from HDFC Ltd. FY 23 FY 24E

FY23 branch addition; Target MSME share in
4% Insurance penetration in Also expected annual semi-urban and rural
retail customers from group ~1,500 20-25%
addition next few year areas
Source: Analyst Reports, Press Releases
24
Macro Indicators

Banking

25
Credit-deposit growth gap narrows as deposits grow stronger

Deposit growth driven by incremental rise in TD & CD issuances; Credit growth remains strong despite muted offtake
Credit and deposit growth rate (%)

Credit growth1 Deposit growth
Growth % YoY
20 18.2
16.0 16.7
14.8
15 13.0
15.6 11.5
14.6 10.3 10.4 10.4 13.6
10 7.9 11.4
7.2 7.5

9.5 10.1
8.8 5.3
5 7.2
6.0 6.2
3.2
0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24
CD
79% 79% 78% 78% 73% 74% 75% 74% 70% 69% 77% 76%
Ratio2
1. Credit growth are Net Advances growth. 2.Credit-Deposit Ratio is calculated as Net Advances/Total Deposits
Robust growth achieved across segments

Growth for Corporate & MSME segment of private new banks was stronger compared to the industry
Split of Gross Domestic Loan Book ('000 Cr)
Industry PSU Banks YoY Private New YoY Private Old YoY SFB YoY
YoY Growth
Growth Growth Growth Growth
17% 14% 21% 16% 31%
12,357 14,364 Q1FY23 Q1FY24 7,636 8,683 4,156 5,043 471 547 89 116
30% 31% 19% 20% 25% 26% 19% 29% 30% 17%
39% 39% 21% 33% 34% 36%
14% 14% 14% 3%

12% 11% 14% 15% 15% 15% 18% 4% 61%
7% 6% 17%

14% 13% 13%
16% 16% 16% 18%
18% 19% 27% 25% 24% 10% 42% 39% 22%
43% 42% 11% 14% 47% 46% 11%

36% 36% 20% 18%
31% 32%
23% 23% 35%
Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24
X
Retail Agri MSME Corporate + Others
Note: MSME includes SME, LAP, Business Banking and CV/CE loans; Agri includes Rural Loans, Kisan gold card loans and Tractor Loans; Others include Micro
finance, PSL Inorganic + SRs and Loan Converted into Equity and credit substitutes
Source: RBI; Capitaline; Press releases; BCG analysis
Slight softness in credit growth; while deposits continue to inch up

Credit growth by bank category Deposits growth by bank category

Growth % yoy Growth % yoy
40 60
34
31 37 38
29 42
30 26 27 19 40 34
19 18 32
17
17 18 17
16 18 17 15 16 18
10 13 16 17 20
15
10 14 18 12 14
12 10 10
5 11 14
9 11
8 8

3 8 9 9 11
2 6 8
0 0
PSBs 62% 61% 61% 61% 61% PSBs 67% 66% 66% 65% 65%
Market share (%)

Market share (%)
PVT-N 34% 35% 34% 35% 35% PVT-N 28% 29% 30% 31% 31%
PVT-O 4% 4% 4% 4% 4% PVT-O 4% 4% 4% 4% 4%
SFBs 1% 1% 1% 1% 1% SFBs 0% 1% 1% 1% 1%
Source: RBI; Capitaline; Press releases; BCG analysis
CASA continued under pressure as YoY growth declined to 7% from 11%

Term deposits continued to attract liquidity due to deposit repricing
CASA growth YoY by bank category (%) Term Deposits growth YoY by bank category (%)
Growth % yoy Growth % yoy
140 132 60
112 47.4
39.7
100 25 94 40
19 28 25.3
20 16 12 21.7
10 24.3 18.0 24.0
20 18 12 11 11
12 11 6 11.4 10.8 16.9
15 7 20 15.0 18.5
4 5.4 16.1
0 8 7 5 7.9 9.0
4 4.3 15.5
-2 6.8 7.0 13.5

-20 0 2.2 5.0
3.1 2.0
FY21 FY22 Q1FY23 FY23 Q1FY24
FY21 FY22 Q1FY23 FY23 Q1FY24
PSBs 66% 64% 64% 63% 63% PSBs 69% 67% 67% 65% 65%
Market share (%)

Market share (%)
PVT-N 30% 32% 32% 34% 33% PVT-N 27% 28% 29% 30% 30%
PVT-O 3% 3% 4% 3% 3% PVT-O 4% 4% 4% 4% 4%
SFBs 1% 1% 1% 1% 1% SFBs 1% 1% 1% 1% 1%
Banks continued issuing CDs as credit growth

sustains amid high rates
Certificate of Deposits outstanding (Rs '000 crore)
Banks may prefer to offer higher
interest rates on CDs for shorter
400
periods of time in order to mobilize
resources.
305 302
294 312
300
249 280 This contrasts with offering higher
201 241 interest rates on fixed deposits for
200
longer periods of time.

128
100 86
72
62 64 57
Banks expect the rate-setting
monetary policy committee to begin
reducing the repo rate starting in
Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- 23- the fourth quarter of FY24.
20 20 21 21 21 21 22 22 22 22 23 Jun
CD as %
of total 0.4 0.4 0.4 0.4 0.3 0.4 0.9 1.1 1.2 1.4 1.3 1.4
assets
Source: RBI, Prime Database 30

Macro Indicators

Banking

31
NPA and Risk Management
Gross Non-Performing assets (%)

%
15
10.3%
Indian Banking 10 9.1%
Industry GNPA 8.5%

7.4%
7.3% 6.9%
at a decadal 5
5.5%
5.4%
5.8%
5.0%
5.9%
4.9%
5.7%
4.8%
5.0% 4.6%
low 4.1% 3.9% 3.7%

4.7% 3.7% 3.5% 3.5%
3.7% 3.4%
1.9% 2.2% 2.2%
2.1% 2.1%
0
FY20 FY21 FY22 Q1FY23 FY23 Q1FY24
Analysis has been made based on 33 Banks: 12 PSBs, 10 Private-New, 8 Private-Old Banks and 3 Small
Finance BanksSource: RBI; Capitaline; Press releases; BCG analysis 32
Reduction in NPAs levels seen across banks & bank categories (1/2)
Driven primarily by write-offs and lower slippages
Select Banks
19.9
Jun’22 Jun’23
14.9
13.5
11.3 11.3
10.2
9.3 9.1
7.7 8.1
7.3 6.8 7.3 7.1 7.4 7.0
6.8 6.7 6.3

5.1 5.0 5.5 5.2
4.1 4.5
3.2 3.4 2.8 2.8 2.2 3.5 3.9 3.7
2.4 2.8 2.3
2.0 2.0 1.9 1.8 1.3
1.2
Yes
UCO
Axis
HDFC
Indian
Bandhan
Kotak
Canara
BOM
IDBI
ICICI
RBL
BoB
IndusInd
BOI
IOB
PNB
SBI
P&SB
Central
Union
Private New Banks PSU Banks
Source: Investor Presentation, Analyst Report BCG Analysis 33

Reduction in NPAs levels seen across banks & bank categories (2/2)
Select Banks
9.1
Jun’22 Jun’23
6.4 6.5
5.8 5.9
5.2 5.1 5.2
4.2 4.0 4.1

3.7
3.3

2.7 2.6 2.8
2.4
2.0 1.8 2.0 1.8
1.3
Karnataka
Ujjivan
Equitas
CSB
AU
Federal
Dhanlaxmi
KVB
DCB
J&K
SIB
Private Old Banks Small Fin. Banks
Source: Investor Presentation, Analyst Report BCG Analysis 34

Healthy coverage against NPAs across banks

Select Banks
Provision coverage ratio1 (%) (Jun '23)
Private New Banks PSU Banks Private Old Banks Small Fin.
Banks
98
92 90 88
Q1FY24: 83
77% 80 78 81 80 79 80 77
75 77 76 75 74 75
71 70 69 68 73 71 71 71
66 69
65 64 62
Q1FY23:
58
73%
48

Ujjivan
UCO
Indian
Equitas
BOM
Central
IOB
CSB
Canara
AU
BOI
PNB
BOB
SBI
Union
PSB
South Ind.
Federal
RBL
Dhanlaxmi
Karnataka
Bandhan
IndusInd
Kotak Mah.
ICICI
Yes
Karur Vysya
DCB
Axis
IDFC First
J&K
IDBI
HDFC
YoY
Change -323 316 233 539 205 -141 -289 -566 609 -2359 1260 1231 578 986 258 -147 1105 -23 635 -673 437 -1074 2074 801 798 600 543 1255 630 1470 -61 -260 933
(bps)
1. All the above PCR% are excluding Technical write-offs and have been calculated as (GNPA-NNPA)/GNP
Source: Capitaline, Investor presentation, Press release, BCG Analysis 35
Bounce rate flatten out post a drastic fall from pre covid levels
Despite inflationary pressures, bounce rates at a three-year low, showing that the asset quality of banks remains
strong
Bounce rates remained stable in Q1FY24
Bounce rate, volume (%) Bounce rate, value (%)
45.4
38.1

31.2
32.8 29.3 29.4 29.3
27.5
24.8
22.5 21.6 21.3
Jun-20 Mar-21 Oct-21 Sep-22 Q1FY24 Jun-20 Jan-21 Jan-22 Mar-23 Q1FY24
Note: Bounce rate is for recurring payment transactions on NACH platform (e.g.: Insurance premium, EMIs, etc.)
Source: NPCI, BCG Analysis 36
Macro Indicators

Banking

37
Digital in Banking
Continued push on digital banking across banks

Banks are adapting digital banking by adding more branches and repositioning it as advisory centers with Select Banks
a digital-first mindset
Q1FY24 vs. Q1FY23
Saving Account sourced

98% vs. 87% 70%1 vs. 68%1 63%4 vs. 65%4 98% vs. 30% NA
digitally
FD sourced digitally 58% vs. 66% 72% vs. 68% NA NA 60% vs. 60%
~INR 332 Cr5 vs. ~INR

SIPs initiated digitally NA 76% vs. 42% 98% vs. 98% 63% vs. 78%
650 Cr5

Credit Card issued 214K+ cards vs. 60k
61% 84%2 vs. 81%2 97% vs. 90% 78%6 vs. 84%
digitally cards
Personal Loans sourced ~INR 5.4k Cr vs. ~INR

89% vs. 71% 55% vs. 52% 74% vs. 54% 60%6 vs. 94%
digitally 4.4K Cr
Volume of MB Transaction
NA 95%3 vs. 93% NA 93% vs. 92% 59%
and YoY growth
Note: 1.Digital Tablet based account opening process for Q1 FY24; 2.Issuance through Phygital mode; 3. Based on all financial transactions by individual
customers in Q1FY24 4. Opened through YONO 5.MF/PL sales through YONO- Annual 6. E2E Digital
Source : NPCI, Investor presentations, Analyst reports, BCG analysis 38
Digital in Banking
43% YoY jump witnessed in digital transactions in Q1FY24

Split of Financial Transactions (%) by volume
YoY Change Average
(Q1FY24 vs Ticket Size
No. of transactions (bn) Q1FY23) (Rs. Q1FY23)
11 15 18 23 36 50 67 121 200 42 60 UPI 59% 1,586
0% 0% 0% 4%
14% 15% 17% 15% MB + IB 36% 19,392
22% 25%
3% 33%
10% 38% 42% 41%
13% 11% 46%
11% 29% NACH -4% 9,814
8% 13%
19%
6%
39%

21% 8%
6% POS -10% 2,891
47%
5% 17% 50%
62% 6% 51% 50%
55% 3% 48% Cheque -6% 110,797
46% 10%
38% 2% 4% 2%
27% 4% 0% 2% 2% 1%
18% 1%
10% 1% 4% 5% 2% 3% 0% 2% 4% 1% 3% ATM -4% 4,945
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24
Notes: 1. Financial Transactions do not include cash transactions at branches; 2.Internet transactions include RTGS, ECS, NEFT and IMPS financial
transactions . ATM and Mobile transactions included are financial transactions only; 3. Total may not sum to 100 because of differences due to rounding off
4. Ticket Size calculated basis Value/Volume
Source: RBI data, National Payments Corporation of India (NPCI) statistics, BCG analysis 39
Digital in Banking
Top 3 players contribute ~96% of all UPI transactions
Share of UPI Transactions by UPI apps
Cred 11%
Amazon Pay
8%
Axis Bank Apps
PhonePe 46% 47% 7%
ICICI Bank Apps 6%
Yes Bank Apps 5%
3%
BHIM

Google Pay 34% 35%
Others 60%
Paytm 15% 14%

Other banks, PSPs 5% 4%
Jun’22 Jun’23 Jun’23
1. Total may not sum to 100 because of differences due to rounding off
Source: RBI data, NPCI, Press Releases, BCG Analysis 40
Macro Indicators

Banking

41
Key Recent Regulatory Measures
This would be done through a temporary increase in the amount of funds lenders set aside with
RBI to withdraw 1 trillion rupees
the central bank, as it tries to keep a lid on inflation. This measure also intends to absorb
via incremental CRR
liquidity added to the banking system due to a return of 2,000-rupee denomination notes
About Rs 35,000 crore unclaimed deposits as of February 2023 were transferred to RBI by
RBI to develop web portal for
public sector banks (PSBs) in respect of deposits which were not operated for 10 years or
public to search unclaimed
more. In addition, it is also proposed to put in place a compensation mechanism for delayed
deposits across banks
updation/rectification of credit information. Detail guidelines are yet to be issued
Regulated entities (REs) can accept green deposits denominated only in rupees and allocate the

Framework for acceptance of proceeds to eligible green activities/projects. It is only in the case of bulk deposits that
Green Deposits banks have the flexibility to offer interest rates higher than the card rates. So, banks may
pitch the green deposits to bulk depositors.
RBI proposed to introduce and enable UPI-based payments through AI-powered conversations,
that will enable users to engage in a conversation with an AI-powered system to initiate and
RBI to enable UPI payments
complete transactions in a safe and secure environment. Also, to promote the use of UPI-Lite,
through AI conversations
it is proposed to facilitate offline transaction using Near Field Communication (NFC)
technology
Source: RBI, Press search 42

e-RUPI
e-RUPI is a contactless cashless voucher based payment mechanism. It can be redeemed by beneficiary without a bank
account, card, digital payments app or internet banking access.
Flow
1 2
Sponsor
(Corporate/ Government Voucher creation request Initiate request to generate e-RUPI
Department/ Individuals )
Confirms e-RUPI generation Confirms e-RUPI creation
Issuer bank / non-bank
4A 3
prepaid payment Real time tracking of
Distribution instruments E-RUPI redemption
4B

Merchant
deliveres
service to
Indian Citizen
Beneficiary beneficiary
reaches for
(Beneficiary)
redemption
Merchant Customer Merchant Beneficiary
5 offering shows scans receives a Successful
service voucher/ voucher/ verification Payment 7
SMS SMS code
6
43
Source: NPCI, BCG analysis
Use Cases of e-RUPI

115,288 • e-RUPI during pilot
Voucher Created Volume phase between Sep'22
Voucher Redeemed Volume to Apr'23, was majorly
used for medical
facilities (65%)
57,013
• In next phase it is
expected that it will
be used for
scholarship, pensions &
17,644
12,049
8,987
incentive payments
6,297 3,949 5,841 4,455
3,149

National Health Authority National Health Mission Madhya Pradesh Gov. Rajasthan Gov. Others
AB-PMJAY Lab Voucher Lab Voucher Cycle Voucher Scooty Voucher
Source: NPCI, BCG analysis; Between September 2022 to April 2023
Banks issuing e-Rupi • RBI on June 8, 2023

allowed non-bank
prepaid payment
instruments to issue e-
RUPI vouchers.
44
Macro Indicators

Banking

45
Individual player performance (I/IV) – Standalone

Net Advances Deposits CASA
Period Rs Lakh Cr Rs Lakh Cr Ratio3 (%) NIM1 (%) CIR2 (%) GNPA (%) ROA1 (%)
Q1FY24 16.2 ▲ 16% 19.1 ▲ 19% 42.49 ▼ -329 bps 4.1 ▲ 6 bps 42.8 ▲ 222 bps 1.17 ▼ -11 bps 2.1 ▲ 17 bps
Q1FY23 14.0 16.0 45.78 4.0 40.6 1.28 1.9
Q1FY24 10.6 ▲ 18% 12.4 ▲ 18% 43.29 ▼ -356 bps 4.8 ▲ 75bps 40.2 ▼ -208 bps 2.76 ▼ -65 bps 2.5 ▲ 42 bps
Q1FY23 9.0 10.5 46.85 4.0 42.3 3.41 2.1
Q1FY24 8.6 ▲ 22% 9.4 ▲ 17% 45.54 ▲ 182 bps 3.9 ▲ 43 bps 48.3 ▼ -389 bps 1.96 ▼ -80 bps 1.9 ▲ 36 bps
Q1FY23 7.0 8.0 43.72 3.5 52.2 2.76 1.5
Q1FY24 3.3 ▲ 17% 3.9 ▲ 22% 49.01 ▼ -910 bps 5.3 ▲ 73 bps 44.5 ▼ -763 bps 1.77 ▼ -47 bps 2.9 ▲ 92 bps
Private new banks
Q1FY23 2.8 3.2 58.10 4.6 52.1 2.24 2.0

Q1FY23 2.5 3.0 43.11 4.2 43.9 2.35 1.6
Q1FY24 2.0 ▲ 7% 2.2 ▲ 14% 29.43 ▼ -138 bps 2.4 ▼ -228 bps 73.9 ▼ -365 bps 2.00 ▼ -1,145 bps 0.4 ▼ -37 bps
Q1FY23 1.9 1.9 30.81 4.6 77.6 13.45 0.8
Q1FY24 1.7 ▲ 20% 2.4 ▲ 9% 52.61 ▼ -304 bps 5.1 ▼ -166 bps 37.8 ▼ -569 bps 5.05 ▼ -1,485 bps 1.5 ▼ -49 bps

Q1FY23 1.4 2.3 55.65 6.7 43.4 19.90 2.0
Q1FY23 1.3 1.1 50.04 6.0 73.8 3.36 1.0
Q1FY24 1.0 ▲ 8% 1.1 ▲ 17% 36.02 ▼ -717 bps 6.8 ▼ -117 bps 45.7 ▲ 968 bps 6.76 ▼ -49 bps 2.0 ▼ -84 bps
Q1FY23 0.9 0.9 43.19 8.0 36.0 7.25 2.8
Q1FY24 0.7 ▲ 21% 0.9 ▲ 8% 37.30 ▲ 130 bps 4.4 ▲ 46 bps 66.5 ▼ -127 bps 3.22 ▼ -86 bps 1.0 ▲ 25 bps
Q1FY23 0.6 0.8 36.00 3.9 67.8 4.08 0.8
Note: All figures are global, unless stated otherwise; Calculated ratios may not match with reported figures due to differences in formula xxx Change vs. last year
1. NIM is calculated as NII as a % of average total assets; Return on assets is calculated a net profit as a % of average total assets 2. CIR is
calculated as Opex by Total Income (NII + Other Income) 3. "Domestic" CASA Ratio
Individual player performance (II/IV) – Standalone

Q1FY24 32.4 ▲ 15% 45.3 ▲ 12% 42.88 ▼ -245bps 2.9 ▲ 34 bps 50.4 ▼ -1157 bps 2.76 ▼ -115 bps 1.3 ▲ 77 bps
Q1FY23 28.2 40.5 45.33 2.6 61.9 3.91 0.5
Q1FY23 7.4 11.4 45.44 2.3 46.6 11.27 0.1
Q1FY24 9.6 ▲ 20% 12.0 ▲ 16% 40.00 ▼ -400 bps 3.2 ▲ 25 bps 45.4 ▼ -946bps 3.51 ▼ -275 bps 1.2 ▲ 46 bps
Q1FY23 8.0 10.3 44.00 2.9 54.8 6.26 0.7
Q1FY24 8.6 ▲ 14% 11.9 ▲ 7% 33.00 ▼ -130 bps 2.6 ▲ 36bps 43.8 ▼ -99bps 5.15 ▼ -183 bps 1.1 ▲ 40 bps
Q1FY23 7.5 11.2 34.30 2.2 44.8 6.98 0.7
Q1FY24 7.7 ▲ 147% 11.3 ▲ 14% 34.14 ▼ -206 bps 2.9 ▲ 16 bps 43.7 ▲ -395 bps 7.34 ▼ -288 bps 1.1 ▲ 50 bps
Q1FY23 6.8 9.9 36.20 2.7 47.6 10.22 0.6
PSU banks
Q1FY23 4.4 6.4 37.82 2.2 58.2 9.30 0.3

Q1FY23 4.3 5.8 40.73 2.8 41.9 8.13 0.8
Q1FY23 1.7 3.4 50.94 2.2 58.9 14.90 0.2
Q1FY24 1.8 ▲ 18% 2.6 ▲ 2% 44.14 ▲ 106 bps 3.0 ▲ 58 bps 57.0 ▲ 72 bps 7.13 ▼ -199 bps 0.7 ▲ 10 bps
Q1FY23 1.5 2.6 43.07 2.5 56.3 9.12 0.5
Q1FY23 1.2 2.3 39.25 2.6 72.4 7.42 0.2
Q1FY23 1.4 2.0 56.08 3.1 40.0 3.74 0.8
1. NIM is calculated as NII as a % of average total assets; Return on assets is calculated a net profit as a % of average total assets 2. CIR is
calculated as Opex by Total Income (NII + Other Income) 3. "Domestic" CASA Ratio
Individual player performance (III/IV) – Standalone

Q1FY24 0.8 ▲ 15% 1.1 ▲ 12% 31.69 ▼ -231 bps 2.2 ▼ -17 bps 71.9 ▲ 253 bps 6.80 ▼ -454 bps 0.5 ▼ -23 bps
Q1FY23 0.7 1.0 34.00 2.4 69.4 11.34 0.7

Q1FY23 1.5 1.8 36.84 3.0 52.7 2.69 1.1

Q1FY23 0.7 1.1 55.74 3.4 69.2 9.09 0.5

Q1FY23 0.6 0.9 34.39 2.5 62.7 5.87 0.5

Private old banks
Q1FY23 0.6 0.8 32.80 3.0 49.8 4.03 0.5

Q1FY23 0.6 0.7 36.52 3.8 49.6 5.28 1.2

Q1FY23 0.3 0.4 71.43 3.5 64.2 4.21 0.9

Q1FY23 0.2 0.2 35.14 5.2 57.7 1.79 1.9

Q1FY24 0.1 ▲ 15% 0.1 ▲ 7% 31.65 ▼ -143 bps 3.2 ▼ -7 bps 66.5 ▼ -3877 bps 5.21 ▼ -114 bps 0.8 ▲ 152 bps
Q1FY23 0.1 0.1 33.08 3.3 105.2 6.35 -0.7
1. NIM is calculated as NII as a % of average total assets; Return on assets is calculated a net profit as a % of average total assets 2. CIR is calculated as Opex
by Total Income (NII + Other Income) 3. "Domestic" CASA Ratio
Individual player performance (IV/IV) – Standalone

Q1FY23 0.5 0.5 39.73 6.4 65.3 1.96 1.8
Small Finance
Q1FY24 0.3 ▲ 34% 0.3 ▲ 36% 38.41 ▼ -1326 bps 9.0 ▲ 25bps 65.9 ▼ 344 bps 2.75 ▼ -135 bps 2.3 ▲ 85 bps
Banks
Q1FY23 0.2 0.2 51.66 8.7 62.4 4.10 1.5

Q1FY23 0.2 0.2 27.94 10.9 58.6 6.51 3.7

1. NIM is calculated as NII as a % of average total assets; Return on assets is calculated a net profit as a % of average total assets 2. CIR is calculated as Opex
by Total Income (NII + Other Income) 3. "Domestic" CASA Ratio
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Banking Sector

PSU (12 banks) Private—New (10 banks) Private—Old (8 banks)

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Total Deposits Total Net Advances Retail Advances1 Corporate Advances

₹183.5L Crore ₹139.7L Crore ₹44.4L Crore ₹48.8L Crore

Total Income Net interest income Non-Interest Income PAT

₹4.9L Crores ₹1.9L Crore ₹65.9K Crore ₹74.0K Crore

Copyright © 2023 by Boston Consulting Group. All rights reserved.

1.4% Increased by 41.02% 48.0% Reduced by 3.7% Reduced by

Copyright © 2023 by Boston Consulting Group. All rights reserved.

• Strong asset quality metrics bolstered confidence in the industry

Copyright © 2023 by Boston Consulting Group. All rights reserved.

• Digital Banking continues to remain an important agenda for bank

Key Performance Indicators

Business: Advances & Deposits

overview Digital in Banking

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Individual Player Performance

India expected to grow at 6 to 6.5% amongst the fastest in the world

FY24 GDP growth forecast2 retained by most

JP Morgan 5.5% 0 bps

13.1% S&P 6.0% 0 bps

Copyright © 2023 by Boston Consulting Group. All rights reserved.

World Bank 6.3% 0 bps

-6.6% Fitch 6.3% 30 bps

Q1FY24 RBI 6.5% 0 bps

Moderate growth across most high-frequency indicators vs last year

Latest Vs. Vs. Latest Vs. Vs.

Trade & Investment BFSI

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Most BFSI indicators showcased robust growth over June 2022

UPI Mutual funds AUM (INR Tn)

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Three-wheeler sales witnessed robust growth of 28% YoY in June 2023

Passenger vehicles sales (’000 units) Two-wheeler sales (’0000 units)

400 200 170 160

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Figures represent wholesale numbers (including exports)

Key Performance Indicators

Business: Advances & Deposits

overview Digital in Banking

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Individual Player Performance

Copyright © 2023 by Boston Consulting Group. All rights reserved.

Industry profitability improved during the quarter

RoA Tree PSBs Private New Private Old SFBs Industry

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Yield: Private players better positioned to pass through rate hikes

Fixed Rate Loans 30% 25%

For Pvt Banks, higher

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MCLR EBLR Base Rate Others

TD and Repo rate differential narrowed down as banks

9.2 9.3 9.2 160 Repo Rate

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Banks scaled back on provisioning owing to confidence in books, Opex gained

Credit costs by bank category Opex by bank category

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Industry ROA and ROE maintain an upward trajectory

Return on Assets1 by bank category Return on Equity2 by bank category

Copyright © 2023 by Boston Consulting Group. All rights reserved.

PSBs Private New Private Old SFB Industry

Banks capitalization remain at comfortable levels